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tv   Mad Money  NBC  February 27, 2016 3:00am-4:00am CST

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friends. i'm just trying to make you some money. my job is not juentertain but to teach and coach. calllle at 1-800-743-cnbc c tweet me @jimcramer. we've had a good week. the economy's better. maybe earnings season's been terrific. we've been going higher because oil's going up. and there's really nothing else to it. that's why this market started so strong today and then petered out when oil reversed. closing down 57 points. s&p backsliding .19%. nasdaq .18%. oil was strong. this oil makes everything very difficult to figure out. because if a company reports an amazing quarter on a day when oil goes down, the stock will get hit regardless. but if oil is flying -- >> buy, buy, buy! >> -- you can bet that even a mediocre quarter will be rewarded with applause and a
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hallelujah now, i for one think that oil is going to stay lower longer. we ran up to that $34 level as we did earlier today. we start getting some real resistance because there are so many strapped oil companies out there that need to dump crude on the market or sell futures to it's almost impossible to get over that 34, 35 hump. that's why i urge you to understand the rhythm we have got going here in this market and recognize that occasionally we'll get sell-offs in the stocks of companies that deliver fantastic quarters but have the misfortune of reporting on a day when oil goes down. that could be where the opportunity comes in. what do i mean? let's take salesforce.com which reported the best quarter of any technology company in 2016. you know i don't likikto chase. the stock missed almost 10% after the quarter. i said you have to be careful because there could be some turbulence that could bring it down. salesforce itself which obviously did a great job. chance. i suspect if oil opens lower may get the chance to buy salesforce. as long as you understand oil's
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whether or not you believe that makes any sense, which is irrelevant, then the best moments to buy high-quality stocks may be when oil sends them lower. with that in mind let's take a look at next week's game plan. this one actually starts not on monday but tomorrow. when warren buffett releases the berkshire hathaway annual report. lately buffett's stock portfolio has had a tough time of things. some high-profile disappointments. i'm thinking ameririn express and ibm. ny of us are hoping g at he will address those holdis. we'll be reading the letter this weekend and then be listening to the fabulous becky quick interview the oracle of omaha to see if he's sticking with the management of these companies when he comes on air from 6:00 to 9:00 a.m. eastern. we also care about some of his potions in the oil and gas industry where all of us are grasping at straws. what does buffett think of oil and gas pipelines? do you know he has a monster position in them. how about the down and out railroads which ship crude? he owns the king, burlington northern. i can't wait to hear what he says when becky asks him about these investments. maybe he will comment on today's big win that he has. kraft heinz.
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reports. vrx. this stock's been put through the ringer. i want to hear how t ty defend theiaccounting recognition problems. but there's another reason why i care about valeant. this stock is a gigantic holding of bill ackman and his pershing square hedge fund. ackman's been having a tough time of late. just today when herbalife, a company he's been short for a long time because he thinks it's a pyramid scheme, reported a uery strong number and said it might soonesolve its issue with the ftc. this stock shot up 9 points or 20% on that news. you can bet that in this rapaous world if valeantntets hit on earnings, driving ackman's position down, you're going to hear chatter that ackman may have to cover, or buy back his short on herbalife. that's right. bad news for valeant m m be more good news for herbalifif how twisted is that? we've been fixated on the stocks of companies that offer value because it's been such a good recipe for success so far in 2016. and we get results from not one but two fabulous plays on value on tuesday. dollar tree and ross stores.
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family dollar. frankly at first it was a little rocky. that merger, i wasn't so sure. but not anymore. i think now this is a totally winning combination and i expect a very good quarter. that will be another one where if you got a chance to be able to buy it, say, on the stock market being down monday i would buy some. same thing for ross. now, i've got to tell you, ross buys all that closeout merchandise from hurting department stores. and while don't like it as much as tjx i bet it does quite well here. given again how much value figures into thealculus of younconsumers since the giant terrible great recession. they just don't splurge. wednesday i'm focused on three analyst meetings, not earnings but analyst meetings. the first is from target, whicic reported a fantastic quarter this week and gave you a clear path for online growth. something that we had been concerned about because it was weak in the previous quarter. if target goes down ahead of this meeting, again, perhaps because of oil selling off, i would buy the e ock, my charitable trust actionalertsplus.c.c has a big position in target. speaking of oil the best oil of all is exxonmobil.
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and they've husbanded their capital and they've got the best balance sheet of any energy company in the world. so i'm going to listen rapt for any clues about what exxon thinks will happen both short and long term for crude. they do have a long term. exxon has a 50-year business proposal. while their record isn't perfect, they're not blow hazardous to talk about how oil's going right back up to 80s like so many of the more rosy oil folks that you have to listen to. then there's honeywell. hon. here's a crazy one. ceo david cuddy delivered an amazing quarter last month but since then he's been frying to acquire united technologies, first in a friendly way after united technologies ceo greg hayes suggested they talk and then in a hostile way after hayes had second thoughts on the combination. i personally think that as brilliant as the combination might be it likely won't pass muster with all the big regulatory bodies out there, especially the european union, which are l. do anything to protect one of its own. airbus, which is obviously a customer of these two companies if they merge. as long as cuddy keeps trying to
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stock will stay under pressure. that's where the opportunity comes in. if it weren't for this prospective deal blasted again this afternoon by hayes, i bet honeywell's stock would be up. perhaps up considerably now that the cyclical stockare baba in favor. here's another o o-related play that intgues me. kroger. in other words, if oil goes down, this stock's going to go down because it takes the whole market with it. now, i would buy some kroger before it reports because i think the stock's done resting. it's kind of just trading sideways for a while, and i think it's about to take off. kroger's such a terrific operator that it's very rare for it to ever be off its 52-week high. i don't want you to miss the opportunity. this may be your chahae. will the cell phone and internet of things i.o.t. internet of companies ever regain their we'll find out when broadcom, that's the merged entity of avago and broadcom, reports. this company's a communications tech powerhouse, semiconductor
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i say overly because there are so many other businesses besides apple. i don't want to guess how the stock will behave because of that apple connection that's in everyone's mind. it's more perception than reality. but i bet the quarter will be a strong one. finally, on friday we get the labor department's non-farm employment report and i've got to tell you that this may be the only number out there that can possibly supersede or be more influential than the price of oil. think the stock market wants to see a number that's on the weaker side cause there will be too much talk of a march rate many came into the year betting the fed would give us a march rate hike but a weaker employment number on friday could put an end to all that speculation. if so and we get a friday rally in oil, well, look out above. however, if the number comes in just say the bottom line is that you'll be glad to have some cash around to buy the compelling from because of the inane but incredibly powerful oil to stock market linkage that clouds the
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in the real world ofofarnings and then the fanciful earnings of the s&p 500. let's go to ted in texas. ted! >> caller: ba-ba-boo-yah from the longhorn state. >> nice. >> caller: jim, thanks for taking my call. i'm looking at investing in ststwood hotels and resorts. they're merging with marriott international. and based on the agreement it looks like the starwood shareholders would get about $70 of stock per share, $2 in cash, and an additional $7 or $8 from a timeshare spinoff. so i would appreciate any thoughts on -- >> sure. first i should disclose that in fairness actionalerts sold some stock when it was high and then sold some stock when it was really low. i feel bad about starwood because i didn't stay with the combination. that said, i'm not crazy about the hotel group right now. so i'm going to tell you i think after hot has just run from its bottom let i ipull back to 64, 65.
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not that i wasn't kicking myself every minute because my charitable trust sold very close to the bottom. thank goodness we sold some at the top. let's go to joey in florida. joey. >> caller: boo-yah, jim. >> boo-yah. >> caller: so you talked quite a bit about ling amazonproof stocks. but i came another that's amazonproof and that's signet jewelers who operates brands like -- >> i like the signetetut there's a credit issue with signet. and by the way the consumer has pulled back from expensive items. it just happened. it's a new thing that's happened in 2016. that makes me like signet less. we were shocked at how it ran up but t think you want to be careful of two that had run up signet and mattress firm. both concerned me. shirley in minnesota minute. shirley. >> caller: hello. >> shirley. >> caller: i'm in kansas. >> oh, my. shirley, you jest. okay. [ rimshot ] sorry. >> caller: that's all right. may i speak? >> yeah. sure. go right ahead. >> caller: wonderful.
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weight watchers. >> wow, you know, i was kind of astonished. i mean, there was so much hype in the stock because of oprah. and this is not that kind of market. that's like a biotech stock, that kind of stuff. it's very yesteryear. we don't like speculatate stocks in this environment. that stock ran up. was the quarter that bad? no. but the expectation his gotten so high. i want to stay away from wtw. oil's in charge, people. and once you realize that, you're going to find plenty of buying opportunities. on "mad money" tonight, are some compans taking a cue from the mad hatter? i'm heading down the rabbit hole and telling you which management teams are living in a fantasy land. then all week long i've focused on stocks that h he lost their mojo and what they can do to get it back. tonight i am eyeing a financial player that could actually be worth banking on. and you know i don't like the banks. and the brains behind the break-up of tyco has set its
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>> announcer: don't miss a second of "mad money." have a question? tweet cramer. hashtag madtweets. send jim an e-mail to or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. madmoney.cnbc.com. can a toothpaste do everything well? this clean was like pow! it added this other level of clean to it. it just kinda like...wiped everything clean. 6x cleaning my teeth are glowing. they are so white. 6x whitening i actually really like the 2 steps. step 1, cleans step 2, whitens. every time i use this together, it felt like... ...leaving the dentist office. crest hd. 6x cleaning, 6x whitening
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have we fallen down the rabbit hole? are we suddenly in a fantasy land of talking flowers, deranged queens, mad hatters? how else do you explain a world where executives have such amazingly positive things to say on their conference calls and yet their stocks plummet anyway? lately a number of companies have given me kind of an alice in wonderland vibe. but fortunately, we're not through the looking glass yet. even though some days it might feel like it. because the markrk is typically smart enough to o e through this kind of wonderland-type commentary. but here's the thing. i tell you to listen to the conference calls all the time. and i don't want you getting misled by this kind of sensatatn, let's say sensational off-key conference calls.
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my nominees alice and wonderland awards for statements that are bizarrely out of step with reality. how fitting it comes with the oscars because there's some mighty fine acting going on here. our first down the rabbit hole nominee, trinity industries! the maker of railroad cars, which reported a mixed quarter with significantly weaker than expected guiuince just last week. and when i say the guidance was weak, i mean they forecast $2 to $2.40 of earnings per share for 2016. the analysts were looking for $3.64. in shoho, things are clearlyly lot worse than they thought.t. however, you'd hardly know it if you listened to management reiterating their comments about a record quarter over and over again. ceo told us that trinity is, and i quote, "for the third straight year w westablished records s r revenues, net income and earnings per share. our businesses created value by leveraging their combined expertise, competencies, manufacturing capacity to
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for a broad range of industrial markets. the most recent quarter completes an impressive five-year period in which our company has demonstrated a solid track record of growth." then another exec. talks about how their barge team is, and i quote, "doing an outstanding job," end quote. and the railroad car business is breaking records. fortunately, this was pretty obvious. and when you got to the analysts' q&a portion of the call, that's near the end, the people running trinity admitted that their outlook included, and quote, "no material improvement." in the company's economic circumstances. and talking about smaller production footprint, lower demand, weaker market prices for their main rail cars. but until the q&a session started trinity's management seemed to be living in another universe for most of the call. one way theyeyidn't deliver just brutally disappointing guidance that ultimately caused the stock to plunge from -- plunge 22% in a single session the next day
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yeah, they were way too rosy. wholesale has been listening to a little too much jefferson airplane? how about jack in the box? you want to understand what makes this fast food story so fantastical, you need to understand when jack reported last november the company gave us a very posititi outlook despite missing on both the top and bottom lines. the stock went up on it. on the conference call back then ceo lenny comma crowed about their two big brands, jack in the box and qdoba, saying, "our level of confidence in our ability to compete over the long term was bolstered by the fact that both brands drove these results by successfully introducing more craveable food and without relying on aggressive discocoting." fast forward to about a week ago and jack once again missed numbers dramatically. with some truly heinous same-store sales and some very conservative guidance. in a release the company cited aggressive promotions and value read mcdonald's, as the main obstacles for completely blowing their sales targets.
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reported jack said they could compete and that discounting wouldn't be a problem. it was more than a problem. but i'll give jack in the box this much credit. at least when they reported this time they acknowledged that they're struggling on the conference call and seemed to return to reality, which is good because the company's getting crushed out there. oh, yeah, the stock was halted when they came out with this news, and it fell 13 points from $77 to $64. in the interim they obviously don't know jack. [ rimshot ] next up, how about linkedin? we already know that linkedin's latest quarter was a massive disaster which caused the stock to plunge 44% in a single day and helped drag down the rest of the social mobile cloud, you know, cohort as the company's guidance for 2016 was downright abysmal.
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international weaknesses a cause of for concern. it was also international concern. saying a slowdown in europe and asia middle east and africa was hurting their business. what the heck? for years linkedin presented itself as a secular growth story. they never mentioned anything about having some cyclicality. right up to the moment it slapped you in the face! on this most recent conference call. it's hard to be that sublimely clueless. linkedin managed to do it. oh, and let's not forget maybe best of all or worst of all, depending upon what kind of ostrich you're giving, tableau software. the analytics firm that blew up on the same day as linkedin. if anything, it's a worse offender. tableau's guidance was nothing short of disastrous. but if you listened to the conference call you might have thought things have never been better. the ceo kicked off the call by saying, and i quote, "tableau's mission is to help people see and understand data. and last year we made exceptional progress advancing that cause. we released innovative new products, expanded a customer base, grew our business." then they threw out a bunch of
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rates, new customer wins, and a growing international business. there was no acknowledgment whatsoever that tableau's business seemed to be headed into a hideous downward spiral. how about the deceleration in license references? why wasn't that up top? what about the slowdown in u.s.-canadian growth? what about the sales productivity issues that management mentioned but provided zero color on? they had barely onsentence in the prepared remarks about the massively disappointing guidance. as if maybe they thought we wouldn't notice? i think that was it, right? it was like these tableau data guys were living in an alternate universe. i mean, this one was straight up orwellian. sure, oceana has always been at war with east asia. the tableau call was incredibly confident yet the stock lost nearly half its value that same day, possibly in part bebeuse lost touch with reality. it took down the stocks of a whole bunch of companies along with it, including
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what had to be a broad slowdown. but alas, the fault was in themselves, not the stars. or maybe in this case the cloud. finally, if we're talking about companies that have gone down the rabbit hole, kinder morgan unfortunately, because we've endorsed them for a long time, it does take the cake. ever since the new kinder morgan was created by merging all the old kinder morgan entities into a c corp. led by rich kinder he insisted the company was on ack to continue growing its monster dividend in 2016. and even as the environment got more difficult and the company continued to report disappointing numbers kinder reported that dividend. of course even at the time the market didn't buy it as kinder morgan had serious funding issues and investors were very skeptical about the company's ability to maintain the dividend despite the assurances. fast forward to early december and the board decided they need to use their cash flow to fund the companans growth not its dividend.
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this was so widely predicted the stock actually rallied 7% on the news. well, of course that's just the stock that plummeted. but what drives me crazy is the fact kinder morgan refuses to acknowledge the reality its dividend was in danger until the moment that it had to slash it. in fact, we thought everything was coming up roses in kinder morgan. and even when the compan crushed that payout, it still said things were pretty darn rosy. i say give me a break, man. come on. we respected you. don't disrespect us. so here's the bottom line. when a company reports bad numbers, don't be suckck down the rabbit hole by incredibly positiveveommentary from management on a conference call. just because the executives talk like they're doing well, that doesn't mean it's true. as you can see from all these stocks that were obliterated even as their ceos had tried to paint incredibly positive pictures. dreamy ceos, listen to me. next time just paint by the darn numbers. and apologize to shareholders
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much more "mad money" ahead. can the mastermind behind one of the street's greatest break-ups concoct another winner in dow du pont? i'll reveal. then i'll tell you why this market's nonsensical moves have more to do with peer pressure than fundamentals. but first, is it time to start buying beaten-down names poised for r bound? i'm revealing a company that's down. but maybe it shouldn't be out. it's a big surprise. stick with cramer. but there's a difference between the omega-3s in fish oil and those in megared krill oil. unlike fish oil, megared is easily absorbed by your body... ...which makes your heart, well, mega-happy. happier still, megared is proven to increase omega-3 levels in 30 days. megared. the difference is easy to absorb. i take pictures of sunrises, but with my back pain i couldn't sleep and get up in time.
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all week i've been trying to teach you about how once hot stocks sometimes lose their mojo and what they can do to get it back. now that the market s started to recover from the e utal sell-off we experienced earlier this year you might think this is a good time to start buying beaten-down names that could be poised to rebound. but you've got to be discerning because not everything that falls will be able to rise again. sadly the drug companies haven't invented viagra yet for the stock k rket. although i'm sure someone's working on it. and given the vast carnage out there, this would be no orphan drug. [ rimshot ] our next rise and fall story, b of i holdings. bofi for all you home gamers. the nationwide bank that happens to be the oldest internet-based bank in the country. that's what b of i stands for, bank of the internet. now, here's a stock that's had a really good run, roaring 71% higher in 2012, then vaulting another 182% in 2013.
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bit in 2014, down 1% for most of last year, this stock was on fire, rallying from $19.45 to the beginning of 2015 to a peak of nearly $36 last october. however, in the months since then b of i has been absolutely annihilated tumbling nearly 48% from its highs. and that is a staggering decline. so what exactly happened here? for years back in b of i it had been a red hot stock because this company was one of the few success stories in the realm of internet banking. a space that's l ltered can with casualties. b of i, however, was able to steadily grow their deposit base, their total loans and interest income what they make of your deposits. with the rise of the smartphone banking purely over the internet became a lot more convenient and b of i was perfectly positioned to snatch up a ton of this new business. who wants to go to a bank branch when you can do everything directly from your phone or in the worst case from any atm
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and because it doesn't have any branches it is t. has a huge advantage over tradititial brick and mortar banks in terms of costs. theyeyon't need to rent a bunch of real estate and hire a bunch of tellers if they want to expand into a new region. they're already everywhere in the country on the internet. and that's the business model that allowed b of i to become a lean, mean growth story. then back in april 2014 4 e company made its next move. b of i made a bid to acquire h & r block's banking business, which the tax preparers, you know if you're watching the show, was desperate to get rid of in order to avoid all the onerous regulations that fall on any company in the banking post the great recession. now, at the time h & r block bank was the third largest issuers of prepaid debit cards in the country as well as providing financial services to h & r block tax preparation customers. it's a good business. and thth's why b of i's stococ jumped 8% in one day on the news. now, everybody on wall street wanted this deal to happen but it got -- remember we had the ceo on for literally for h & r
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regulatory issues, who knows when they're going to get ironed out.t. that's why b of i's stock underperformed in 2014. still the company continued tting up strong results. finally last august the regulators approved the h & r bank transaction, offering it to b of i. but soon as that happened the analysts started getting more cautious on bofi, saying it had gotten a little too hot. however, after the deal close on september 1st b of i briefly got its group back. it rallied 32% from then through its peak in mid october. and that's when everything started to go awaw. on the night of october 13th "the new york times" deal book published an article indicating that one of b of i's former internal auditors was suing the company alleging he'd been fired after revealing what he believed to be wrongdoing including failing to provide full and timely information to regulators and not being forthcoming with the s.e.c. basically, his complaint was that b of i was cutting corners and violating federal laws that protect whistleblowers when they
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of course b of i was quick to go on the offensive saying this former employee had already made all of these allegations to federal regulators who "reviewed them in depth and have found them to be wholly without merit." still, the rebuttal didn't do much. the stock plunged 30%. from $35 to $25 the very next day. and shares pretty much continued to go lower right up until two weeks ago when they bottomed finally at 1350. and b of i's been rebounding ever since. it's coming back. up to $18 and change as ofof today. sosohere do we go from here now that the stock is on the mend? after being more than cut in half from its october highs. b of i has continued to post incredibly strong results. including two-cent earnings beat at the end of january. this will continue to be a aolid growth company. especially with h & r block's banking business really clicking in this tax season. they've got superior loan growth versus the rest of the banking cohort and they don't need the fed to keep raising interest rates in order to do well although it certainly wouldn't hurt them. problem is t t lawsuit. typically i don't like to get involved in stories that are
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real legal expertise on the subject at hand and are following the issue very closely you might as well just be betting on a coin toss. however, i did go to law school. done some work. does seem to me that b of i is right. it's right on this lawsuit. even if it's not with the stock trading at 8.5 times next year's earnings estimates i think it represents real value here, which is why it's been rebounding so hard over the past couple of weeks. here's the bottom line. i'm willing to give you my blessing to bet on a comeback in b of i's holding stock price, and that's bofi. bofi. but only if you recognize this is a long-term investment and the stock could be a real wild trader in the short term because of this lawsuit. if you wait for them to get a favorable outcome in court you could probably miss a lot of the up side but if you're going to own it you have to be willing to take some pain before the king of internet banking regains its momentum as i think it will when the smoke of the litigation clears and the earnings from the bold h & r block banking business start flowing in. let's go to dominick in california. dominick.
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>> of course. >> caller: as a young investor i'm wondering if visa's a good long-term investment. >> i think it's a fabulous one. i think charlie sharp does a the stock is off nicely from 81 down to 72. it's very rarely that far off its 52-week high. i would like it if you started with an investment in letter v because i think visa's an excellent company and a terrific stock. you know what, speaking of excellent companies with terrific stocks i think b of i could make a comeback but only if you're willing to take some pain to catch the upside. much more "mad money" ahead. kanye west once said you're supposed to buy your shorty tyco with your money. well, guess who did. ed breen. i'll tell you what he can do -- whether he can do the same thing with dow du pont. then copper's been moving higher this month. so is it time to sound the b word? don't you dare call a bottom until you hear what i think is behind the move. and a thank god it's friday edition of the "lightning
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so stick with cramer! (cell phone rings) where are you? well the squirrels are back in the attic. mom? your dad won't call an exterminator... can i call you back, mom? he says it's personal this time... if you're a mom, you call at the worst time. it's what you do. if you want to save fifteen percent or more on car insurance, you switch to geico. it's what you do. where are you? it's very loud there. are you taking a zumba class? seems like we've hit a road block. that reminds me... anyone have occasional constipation, diarrhea... ...gas, bloating? yes! one phillips' colon health probiotic cap each day helps defend against occasional digestive issues. with three types of good cteria. ve the regular life. phillips'. get ready to show your roots with roots touch-up from nice'n easy. seamlessly blends with leading shades, even salon shades in just 10 minutes. for natural looking color as real as you are. show the world your roots
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if you remember back in early december before this market's hideous january sell-off, we got some huge news. the chemical giants dow and du pont were planning to merge and then subsequently break up the combined entity into three
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companies. both stocks are now well below where they when the news came out. and that's why i think it's the perfect time to stress just ho much i believe in this deal. hence why we own dow chemical for my charitable trust which you can follow along from bulletins in actionalertsplus.com. we just did the big weekly wrap-up. so what makes me like this merger and then break-up plan? why am i so confident it's going to create a tremendous amount of value for shareholders? simple. while du pont's ceo ed breen only took over that role in mid october, he's going to become the ceo of the combined company and this man is a master of breaking up businesses in order to unlock valulu the idea's bn met with some skepticism on wall street. the guy just took over as du pont's ceo a few months ago, very little experience in the chemical space. expected to run the combined dow and du pont? mm. to which i say this is not all about chemicals. it's about breaking up the merged entity into three separate companies that together will be worth more than the whole. and there's nobody i'd rather have overseeing this split than ed breen. the reason?
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created through the same strategy as the ceo of tyco. breen took over tyco in july of 2002. he left in september 2012. he's still the chairman, though. before breen stepped in, tyco literally spent decades growing its business via a seemingly endless series of acquisitions. the company was the quintessential rollout. but by early 2002 cracks were beginning to emerge in this business model and of course there was breen's predecessor. the unbelievable dennis kozlowski. poster child for corporate excess who among many other scandals basically raided tyco's bank account for $82 million in unauthorized bonuses and was ultimately convicted of looting the company in 2005. he only goout of prison last year. needless to say when koz resigned in june of 2002 tyco was in pretty direretraits. the stock was s freefall. when breen stepped in he first righted the leaky ship bringing it back from the brink of bankruptcy and he oversaw the most successful set of break-up. set of break-ups in stock market
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hallelujah >> in 2004 he sold off 21 500 million but it was in 2006 when breen made his biggest move separate publicly traded business. sound familiar? tyco health care, tyco electronics, now known as t.e. connectivity and tyco remained at the helm. in 2012 he broke up the rump of tyco international into three separate businesses yet again. he spun off the flood contntl business. sold it to pan air. he split off the security business as att worldwide. you know, adt. adt symbol. and he kept the fire and safety business under the tyco international banner. this guy's a master at break-ups. if you want to understand why i believe he can work miracles at dow dupont, which before breen stepped in were healthy companies, you want to look at how much value his multistage break-up at tyco has created. how much exactly? we went through it with the staff and i have to tell you, i was just shocked at how much value there was. let's go over the numbers. when breen took over tyco was trading $13.51.
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care. that became covidien which was bought by medtronic. he also spun off which became the t.e. connectivity. right now trading at -- but if you take out the intervening stock splits anyone who owned stock when breen took the helm would now have two shares so let's call it $71 from tyco itself. then there's the covidien spinoff that would be worth $29.43 per share if f u held it until it was acquirereby medtronic. and let's not forget before covidien was acquired it spun off its drug business as mallinckrodt giving you one share of the new business for every eight shares you owned in covidien. with mallinckrodt now at 69 that translates into $8.66. don't worry it will all come clear. then there's the t.e. connectivity spiff. you would have gotten one quarter of a share in 2006. its parent at 57. that works out at $14.42. now you add those three up and we're already at $115 per share. that was just the first round of spinoffs in 2012.
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again in 2012. so there are two more components to account for. there's that security business breen split off as adt worldwide. and that was recently sold to apollo. now trading at $40 and change. you would have gotten half. so call it 20 bucks. and with the spinoff of tyco's flow control business followed by its merger with pan air you would have picked up a little less than 24% of one share in the new pan air, 11.65. you now let's add them all up. a little arithmetic put them together a a if you owned tyco from the moment ed breen took over to today thanks to all these break-ups you'd now have holdings worth roughly $146 a share. remember, that's up from $13.51 when breen took over. throw in all of the value of all the dividends paid by tyco and its various spinoffs and then you have something worth $179 a share. do you know what this translates into by this guy breen? a 1,2222percent gain since this man toto the helm at tyco in 2002 and steered onto a new
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with that perspective let's say you invested $10,000 with breen in the summer of 2002 and all you did was hold tyco and all of its spun-off bits and pieces, you'd now have a set of investments worth over $120,000. the stock market's amazing, isn't it? isn't that remarkable? i mean, that's 14 years. so here's the bottom line. ed breen created a tremendous amount of value by breaking up the colossus that was tyco into increasingly smaller and easier to understand pieces. and we just quantified how much it was worth to you. i believe he can do the exact same thing by breakiki up the planned dow-du pont bebemoth. that's why i'd be a buyer of dow chemicals hehe, especially since it's down 11% since the deal was announced and had a really good quarter and you'll be participating in what i regard to be the son of tyco merger. while being paid to wait with thaterrific yield dow offers. with ed breen taking charge of the combined entity i think it's
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break. technology... say, have you u en all the amazing technology in geico's mobile app? monile app? look. electronic id cards, emergency roadside svice, i can even submit a claim. wow... yep, geico's mobile app works like a charm. geico. expect great savings and a whole lot more. seems like we've hit a road block. that reminds me... anyone have occasional constipation, diarrhea... ...gas, bloang? yes! one phillips' colon heheth probiotic cap each day helps defend against occasional digestive issues. with three types of good bactia. live the regular life. phillips'. enough preure in here for ya? i'm gonna take mucinex sinus-max. too late, we're about to take off. these dissolve fast. they're new liquid gels. and you're coming with me... you realize i have gold status? mucinex sinus-max liquid gels. dissolves fast to unleash max strength medicine.
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it is time! round." amer's "mad money." calls one after the -- sell, sell, sell! and then the "lightning round" is over. are you ready, skee-daddy? start with tom in massachusetts. tom! >> caller: big boo-yah to you from west springfield. >> nicic oh, man, i know justhere that is. what's happening? >> caller: is it too late to get into altria? >> you know, i have mixed emotions. i'm not recommending any more tobacco stocks on this show, but no, it is not too late even though it's hit a high because it's going to go higher but i don't want to recommend it. let's go to mike in west
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mike. >> caller: jim, how are you doing? >> i'm doing well. how are you? >> caller: just drinking cold beer here. got a question about the retail group. i know they're a great company. tell me they're going to 20 cks after earnings. >> i think the stock should be higher at $8. seems like it's cheap to me. but you know what people like? they like cheap value. they like tjx. bob in pennsylvania. bob. >> caller: ba-ba-ba-ba-ba-boo-yah. >> what's happening? >> caller: endridge enterprise -- >> we're not recommending any fossil fuels once particularly like that which we regard as red flags. joe in indiana. joe. >> caller: hi, jim. thanks to you and your staff my stock is chubb, cb. >> oh, man, is that a great stock? evan greenberg, so much low-hanging fruit to pick from that merger. that is a terrific situation. i'm a buyer of chubbbb you should be there. let's go to linda in delaware.
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>> caller: jim, hi. i'm wondering you what you think what do you think for the future? >> i don't really like the banks here. you have to have strong feelings about the banks to really like them here. and i don't. i think that that one is just okay and will not outperform the stock market. the rest of the market. let's go to aaron in hawaii. aaron. >> caller: aloha, jim. i wanted to ask you, whole foods market, wfm. >> mahalo. and it was sprouts that took the cake today. but i am going out on a limb and saying that i think whole foods did bottom at the $30 level and i like it. i'd like to see the w whole foods, the smaller format stores and i hope they invite us to one so we can do a show from there. connecticut. chris. >> caller: jim, boo-yah. >> boo-yah. >> caller: cosmetics. buy hold or cell. >> we had a very big upgrade by wolf today. that's a big brokerage house that had disliked it. the fact they upgraded it at the
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coming out saying things are bad i'm taking the long side of the trade. alta.. could be wrong but i like wolf's research. let's go to john in new york. >> caller: 67, retired and bought conoco at 62 when oil was at 52. >> we donate care where stocks come from. we care where it's going to. i wawa you to sell that stock on any liftft you might be able to get 35, 38, and then i want you to go. and that, ladies and gentlemen, is the conclusion of the "lightning round"! >> announcer: the "lightning round" is sponsored by td ameritrade. columbia sportswear and vf corp. >> ooh! >> what didiyou do, cut it in half? >> yeah. >> well, then we can't return it. >> maybe north face has peaked. although that isn't the reason why we have half a north face
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>> ooh! >> you're a great zipper. >> last year shares of t t gap plummeted 41% from $42 down to 24 and change. ouch! sorry. we'll cut -- we'll fix this in post-production. >> earlier today in true candor on "squawk on the street" " said that my wife was cheap. >> home goods is on fire. and home goods is where i like to go because my wife is cheap as all get out. >> cheap as all get out is what i said. i meant frugal. i'll straighten it out. it's all good now. it's all good now. i really meant to say frugal. and i regret the error. because her boss watched and
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anyway. >> you made us a l l of money. i don't know what we would do without you. >> wow. will you tell the wife? she's mad at me about making some comnt about how she's frugal this morning. okay? i didn't use the word frugal. >> i cleared that thing up with my wife. right? get that thing off my chest. "mad money," bro. without the need for fillers. your conrt tee might show your age...your skin never will. olay regenerist. olay. ageless. and try regenerist micro-sculpting eyeswirl. it instantly hydrates to plump and lift. let's get these dayquil liquid gels and go. but these liquid gels are new. mucinex fast-max. it's the same difference.
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mucinex fast-max. the only branded cold and flu liquid gel that is max-strength and fights mucus. let's end this. working on my feet all day gave me pain here. in my knees. but now, i step on this machine and get my number which matches my dr. scholl's custom fit ortrttic inserts. now i get immedidie relief from my ot pain. my knee pain. find a machine at drscholls.com degree motionsense is the world's first deodorant activated by movement. as you move, fragrance capsules burst to release extra freshness all day. motionsense. protection to keep you moving.
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copper's up. so let's go buy a copper stock. >> buy, buy, buy. >> oil's flying. give me an oil. >> buy, buy,y,uy! >> yet every day it seems we're in some sort of frenzy to buy or sell whatever's working at that
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decisions that are so split second and so nonsensical that sometimes you just have to sit back and laugh. let's take copper. the red metal's been going down literally for five years. there's just too much of it. the chinese are buying less and less. companies are substituting aluminum for it or polyvinyl chloride piping, pvc if it's cheaper. but for the lala month copper's done in ages. how high? well, if you chart copper, which you can do by monitoring the jjc, that's the symbol for the bloomberg copper index, you can see it actually bottomed at $22 in the middle of january and got back to where it was at the end of last year. what's happened that could possibly cause a bottom in copper? we know the baltic freight index which measures the cost of shippipi big bulk goods including copper has been trading up ever so slightly, off an incredibly low base. we know there have been cutbacks in production because the copper companies have been doing so badly. let's see. demand up, supply down.
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a possible bottom. so if you're in the stock market, you think okay, give me a copper producer, it just so happens that freeport mcmoran, fcx, sells copper. in fact, it just sold a slice of one of its copper mines for a billion bucks to try to fix its balance sheet. why does it have to fix its balance sheet? because freeport has 20 million in debt from buying a couple oil companies right around the time oil peaked. but look oil's up, having rallied up to 32 bucks from 26 not that long ago. copperer flying, oil's not dying, let's go buy in freeport,t, right? i wish life were so easy. in truth freeport's still in big trouble and it needs to raise cash any way you can. why let the facts get in the way of a good story? next thing you know traders are piling into the stock and at one point today it was up 7% before pulling back a bit to close up 4.35%. now, when we see oil rallying like it's been doing for days until the reversal this morning, what do traders want to do? they want to buy the oil companies that need the price of crude to really fly. like the big drillers.
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producers that have been total dogs. that's how ensco, which is a big drilling platform company, reported a decent quarter last night t t cut its dividend b b 93% and yet still went up 6.73% today. that's how transocean stocks, symbol rig, can jump 5.2% no matter that it's nowhere even near as good as ensco, which isn't that good itself. what's wrong with this game? why shouldn't you play? because if copper's a head fake, you just bought the worst of breed copper maker. if oil's just a short squeeze as it's seen by the weakness at the end of the day, you've purchased the companies with the least hope of advancement that could get back their gains in a nanosecond. worst of breed. here's my advice. you want to play -- you want the best way to play a rotation? quit your job and day trade. because these are so ephemeral to the point they're often over by the time you see them. they're almost surefire ways to lose money because you're buying the e rst, most leveraged junk and d tting someone else even dumber than you are will take it off your hands. it's a fool'game.
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someone else play it with their money, not yours. stick with cramer. and those who do should switch to geico becausyou could save hundreds on car insurance. ah, perfect. valet parking. hello! here's the keys. and, uh, go easy on my ride, mate. hm, wouldn't mind some of that beef wellington... to see how much you could save on car insurabce, go to geico.com. ah! (car alarm sounds) it's ok! ugh! heartburn! no one burns on my watch! try alka-seltzer heartburn reliefchews. they work fast and don't taste chalky. mmm...amazing. i have heartburn. alka-seltzer heartburn reliefchews. enjoy the relief. happy anniversary dinner, darlin' can this much love be cleaned by a little bit of dawn ultra? oh yeah.
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of two bottles of this bargain brand.
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so i read some commentary today about how warren buffett may have lost his touch. may we all lose as much touch as that man has lost. i will be devouring his annual report tomorrow. and i cannot wait until becky quick interviews him for three hours. i'll probably be mailing in some questions too. i like to say there's always a bull market somewhere, i promise to try to find it for you right here on "mad money." i'm jim cramer, and i will see you monday! [music playing] ashley (voiceover): on our show, we love bringing you the hits. [grunting] ashley (voiceover): narrator: so get ready to throw down. yeah, all right. he was pretty good. ashley (voiceover): because it's an all out balls to the wall battle royale.
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[opening music] ashley (voiceover): these days life is full of battles, competitions, and war zones. and if you want to survive in this world, you need to get tough. now, i've always considered myself more of a lover than a fighter, but today this lady is looking to learn how to throw a punch. and if the people who train at kmi new york are any indication, i'm in the right place. it's a dangerous world sometimes for some females. they got to get a little tough, so you're going to learn a little krav maga today. rough, no rules techniques so you can defend yourself on the streets of new york. -females unite? -yep. so if we're going to do that, you're going to need one of these. let's do this, ladies. ashley (voiceover): krav maga is known for its lack of flash, its efficiency, and its brutality. created by the israeli military, this form of self-defense

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